Milei’s Economic Reform Sets Argentina Ablaze By Scrapping Crypto Regulations

The proposal to legitimize crypto holdings, even for those behind on tax declarations, has been excluded from the sweeping reformist package presented by the newly established government led by self-proclaimed libertarian Javier Milei in the Argentine parliament.

The Argentine tech outlet group reported on Jan 27 that they removed the section about “asset regularization,” which outlined a one-time tax on various categories of previously undisclosed assets, from the comprehensive legislation known as the Law of Bases and Starting Points for the Freedom of Argentines. This legislation, designed to initiate Milei’s policy agenda, no longer includes the mentioned section.

This particular aspect of the bill suggested a straightforward tax structure, with a 5% rate on all assets declared by the conclusion of Mar 2024, escalating to 10% from April to the end of June 2024 and further increasing to 15% from July to Sept.

The regularization plan encompassed various assets, spanning cryptocurrencies, real estate, personal belongings, stocks, and securities.

Minister of the Interior Guillermo Francos justified the removal of “asset regularization” from the bill by citing its tendency to impede the initiative’s progress in parliament.

Silent Stance: Argentine President Javier Milei & The Crypto Conundrum

In Dec, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship in Argentina had initially suggested that the government officially endorse using Bitcoin through a decree. This proposal still needs to materialize.

However, the “Bases for the Reconstruction of the Argentine Economy” decree, ratified on Dec 20, did include clauses allowing debt settlement in currencies not recognized as legal tender within Argentina.

Javier Milei assumed office during a period of acute inflation in the nation. The Argentine president, who once characterized Bitcoin as a step towards “returning money to its original creator, the private sector,” has refrained from discussing digital assets publicly since taking office.

In Jan, the Argentine president pledged not to obstruct local currencies’ establishment by provincial authorities legally. This commitment arose in response to Ricardo Quintela, the governor of La Rioja province, announcing the introduction of a distinct currency for the region after Milei’s 50% devaluation of the Argentine peso following his inauguration.

Related Reading | CBDC Controversy In The US: Legislation Aims To Halt Digital Dollar

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